Solvay S.A.: Solvay launches tender offer for up to €375 million of its 2028 bonds and announces proposed new bond issuance

Solvay S.A. successfully priced a €500 million 7-year senior unsecured bond offering with a 4.75% annual coupon, attracting over 4 times oversubscription. The notes, rated BBB- by S&P, will mature in 2033 and are expected to list on the Luxembourg Stock Exchange. Proceeds will be used for general corporate purposes, including partial refinancing of €750 million bonds due in 2028. Solvay also launched a tender offer to repurchase up to €375 million of its existing bonds.

Solvay SA/NV (SOLB.BR) offered to buy up to €375M of its 3.875% bonds due 2028 and plans to issue €500M of new seven-year bonds, subject to market conditions. The move is part of proactive liability management, not a change in operating outlook.

Viridis Mining and Minerals, an Australian-listed company, signed a binding deal with Solvay to supply rare earth powder from its Brazil project, Colossus, starting 2028. The agreement guarantees Solvay minimum volumes, with estimated revenue of $915 million for 2029-2034. Viridis aims to secure debt financing for construction.

Solvay SA reported Q3 2026 EBITDA of EUR173M, down 27% YoY due to a plant shutdown and Middle East conflict costs. Performance Chemicals EBITDA rose 17% YoY. Free cash flow guidance is EUR120-150M, but Q4 must generate over twice Q3's figure to meet the lower end. Dividend payout of EUR260M raises sustainability questions, though the company remains committed. Rare earths and soda ash markets were discussed, with mixed outlooks.

Solvay reported Q3 2026 net sales of €1.03B, down 3.3% YoY, and EBITDA of €173M, down 26.6% YoY, impacted by Middle East conflict. The company announced a long-term supply agreement with Viridis for rare earths and continues discussions with OneIM. The Board approved a €0.97 interim dividend. Solvay revised its 2026 EBITDA guidance to €720M-€740M and free cash flow to €120M-€150M.

Solvay (SOLB) stock fell 4.2% to €23.86 after reporting Q3 2026 EBITDA of €173M, below consensus. The company cut full-year EBITDA guidance to €720-740M and free cash flow to €120-150M. Analysts reduced price targets, citing geopolitical disruptions and earnings concerns. The stock hit a 52-week low of €22.58.